New research from Manifest’s US partner ProxyGovernance Inc reveals just how rapidly support is growing for E&S votes at US companies. For the first time, E&S resolutions have represented the largest portion of shareholder proposals. Although the number of resolutions has remained below 200, those resolutions with more than 30% support have seen an 8 fold increase from 4% in 2005 to 32% in 2010.
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
# of Resolutions | 171 | 190 | 198 | 197 | 181 | 163 |
>30% Support | 4% | 9% | 17% | 15% | 20% | 32% |
# Majority Support | – | – | 3 | 2 | 2 | 2 |
Key issues for US companies attracting shareholder support:
Company |
Issue |
Support |
Layne Christensen Co |
Sustainability |
60% |
Massey Energy Co |
GHG Reduction Goals |
53% |
Gardner Denver Inc |
EEO Policy/Sexual Orientation |
49% |
KBR Inc |
Political Contributions |
49% |
Federal Realty Investment Trust |
Sustainability |
46% |
Boston Properties Inc |
Sustainability |
44% |
CMS Energy Corp |
Coal Ash |
43% |
St Jude Medical Inc |
Sustainability |
43% |
KBR Inc |
Global Labor Practices |
42% |
While the E&S votes are moving ahead, the number of Majority Supported Shareholder Resolutions have dropped markedly from 28% across 157 meetings in 2009 to 20% across 114 meetings so far this year. Proxy contests have dropped by more than half with just 11 voted this year compared to 26 in 2009.
Although the US proxy season is now drawing to a close, not all voting results are yet available, however if you would like a copy of the PGI’s presentation of the results so far please email info@manifest.co.uk to get a personal copy.